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Thread: Unauthorized hard inquiry...will this ruin my chances of getting a credit card?

  1. #1
    PhillyDancer1982
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    Unauthorized hard inquiry...will this ruin my chances of getting a credit card?

    OK I want to apply for a credit card next month(because by September, an inquiry from 8/2004 will have fallen off). It is a Citizens Bank Platinum MasterCard. I already have a history with Citizens Bank, because that's where I have my checking account. The card seems good, and I more than meet the FICO score criteria for getting approved, but there is a little problem.

    A little while ago, I was paranoid/suspicious of someone trying to break into my checking account, so I had the account number changed to a new one. At the time that they did this, I asked them if this would create an inquiry on my credit report. They told me "no," it would only appear as a soft inquiry because I was NOT applying for new credit, but simply changing a number of an existing account. A week later, I checked my credit report and saw a hard inquiry from Citizens Bank. I was outraged, mostly because I've been trying so hard to limit my inquiries and wait for the numerous inquiries from summer 2004 to finally drop off. I called the branch office and explained this to the manager, and she told me that it was NOT reporting as a hard inquiry, but a soft one(soft ones do not get seen by creditors nor affect your credit score). I argued with her that it WAS reporting as a hard inquiry on my report, and that I had my credit report in my hand as proof, and finally the manager admitted that the hard inquiry was done by mistake. She wrote a letter for me to send to the credit bureaus, explaining that the hard inquiry should be removed because it was a mistake and that indeed I was NOT applying for new credit so it shoulda never been placed on my credit report in the first place.

    I am in the process of disputing this "unauthorized inquiry" by sending a copy of the manager's letter to Equifax. Although I heard that successfully disputing inquiries is difficult and most bureaus will not let you dispute inquiries. I am worried now, because I want to apply for the Citizens Bank MasterCard but I am afraid that I will be turned down, simply because of this stupid inquiry that I never asked for. I do not want Citizens Bank to mistakenly think that the inquriy indicates that I already applied for the card with them before, or that I just recently got a new loan/line of credit(which I didn't). Will this inquiry(performed by the same bank that I'm applying for the credit card with) ruin my chances of getting approved for the card? Or, is it likely that Citizens Bank already noted in their records that the inquiry was mistaken and not indicative of any new credit apps? The last thing I want to do, is get yet another inquiry for applying for the card, then get turned down...that will further delay my ability to get a new credit card. These kinda credit mistakes always seem to happen to me. Gee if it weren't for me obsessively watching my credit like a hawk, it'd probably have like 100000 mistakes by now. So what do you think?

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    Veteran Member Scout's Avatar
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    Default Re: Unauthorized hard inquiry...will this ruin my chances of getting a credit card?

    I don't think it matters much. Maybe few points.

    Are you with a credit union or a bank? Credit Unions give you a credit card (not debit) if you have a checking or savings with them. Instantly approved! The limit might be $500 or $1000. It is a great starting point though.

  3. #3
    PhillyDancer1982
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    Default Re: Unauthorized hard inquiry...will this ruin my chances of getting a credit card?

    Oh I have a Visa credit card and a few store credit cards already, I'm just looking to have a second major credit card to fully establish credit history. I'm looking to get a mortgage in a year and a half, and was advised by various people in the mortgage industry that they look for at least two major revolving credit cards, a few store cards, a few loans, etc. Also, I want a second credit card because my Citibank Visa is very stingy with raising the limit and the limit never seems to be enough for my spending needs. And that's considering that I always consistently pay off my balance in full each month(or more like, pay it in full 2-3X over, because I have to pay it down before I can rack up more charges for bills).

    I talked to someone at Citizens Bank, and apparently they won't hold it against me because it is the only inquiry in the past 3 months(and that should come off soon, as soon as the dispute with Equifax finalizes). It's still aggravating that they screwed with my credit and put a mistaken inquiry on it though.

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    Default Re: Unauthorized hard inquiry...will this ruin my chances of getting a credit card?

    It shouldn't affect their decision on your credit card app.

    After all I've read regarding bank practices concerning consumer credit, I'm somewhat suspicious that this bank (or many banks) ALWAYS "mistakenly" does a hard inquiry in situations like this, and you just happened to catch them. From what I can find, it seems to me that the established credit reporting regulations really only do any good if a consumer catches a creditor or reporting agency doing something wrong - otherwise they are apparently allowed to operate freely.

    As far as your dispute, without having read any specific info on inquiry disputes, I am sure you can dispute that and get it removed from your report. I doubt very seriously if it's up to the agency - I think it's a matter of law. I know that they have to remove incorrect negative reports if you prove it's a mistake - so I would think same goes for incorrect inquiries. Look up Fair Credit laws to find a specific law regarding disputes / removal of incorrect info and quote that law in your letter to Equifax. Better to arm yourself with all the info you can.

    Quote Originally Posted by pheno View Post
    When you lead a nontraditional life don't try to measure it with traditional milestones.

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    Featured Member Vamp's Avatar
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    Default Re: Unauthorized hard inquiry...will this ruin my chances of getting a credit card?

    Everything depends on how it is set up in the computer. Some bank systems automatically pull credit reports when opening a new checking account, teller could check a box not to pull one, or the teller has to pull the report seperately manually. The computer decides what type of hit it is on the credit report.

    I have said this before and I will say it again. Mortgage lenders do not care if you have one credit card, store cards, or how many you have all together. They care about the percentage of your credit that is available, debt to income ratio, on time payments, length of credit history, and all the other factors that go into your credit score.

    This is a great site that talks about the mortgage process. Here is a link about what mortgage lenders look at http://www.homeloanlearningcenter.co...amortgage.html

    Please do not take anyone's word about anything financial. Go directly to the source to find out. You can always call potential lenders and flat out ask them what they look for. This is also a good way to test their customer service before the loan is processed.

    If you need a differant credit card call around and compare. Local banks and credit unions sometimes have better deals than the ones you get in the mail. Compare default rates, fees, terms, and if the card has any rewards programs. Do your research. Just because you have all your accounts with a bank does not always mean they will bend over backwards for you.

    If you have a copy of the letter for the error in inquiry send that with any application you make. Disputes can take up to 90 days to resolve, generally speaking. By that time the inquiry probably wont matter much. If this is the only inquiry you have had in the past three months I wouldn't worry about it really. The only time inquiries become a major issue is when they are multiple inquires for differant types of accounts in a short period of time.

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    Featured Member Vamp's Avatar
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    Default Re: Unauthorized hard inquiry...will this ruin my chances of getting a credit card?

    Quote Originally Posted by Scout
    I don't think it matters much. Maybe few points.

    Are you with a credit union or a bank? Credit Unions give you a credit card (not debit) if you have a checking or savings with them. Instantly approved! The limit might be $500 or $1000. It is a great starting point though.


    Be careful with these. If you open a checking account,they give you a credit card with it (without you applying seperately for it), usually the credit card is attached to the checking account as an over draft line of credit. Meaning if you go negative on your checking account the amount is applied to the credit card under the credit cards terms. Overdraft credit card terms and rates are usually horrible. They are always much worse than what you would recieve if you applied seperately for a regualer credit card. This is another scheme to collect fees on top of fees.

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    Temporarily Banned Vaughn's Avatar
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    Default Re: Unauthorized hard inquiry...will this ruin my chances of getting a credit card?

    I am in the process of disputing this "unauthorized inquiry" by sending a copy of the manager's letter to Equifax. Although I heard that successfully disputing inquiries is difficult and most bureaus will not let you dispute inquiries
    I would not only dispute with the CRA but also send a legal threat to the company who did this unauthorized hard pull on your credit because it is unlawful to do so and a violation of your credit rights. Demand that they remove the hard pull and quote the section of law that covers unauthorized actions.

    If you would like a copy of some form letters that apply to your situation let me know.

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    Featured Member Vamp's Avatar
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    Default Re: Unauthorized hard inquiry...will this ruin my chances of getting a credit card?

    Threating a bank will just make you look silly. It is not unlawful to pull a credit report when opening a new checking account. Credit card companies and banks pull your credit report all the time without you knowing. Writen in the contract that you sign; you give them authorization to pull your credit report as they wish basically.

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    Temporarily Banned Vaughn's Avatar
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    Default Re: Unauthorized hard inquiry...will this ruin my chances of getting a credit card?

    ^ Indeed. I thought she knew for a fact it was an "unauthorized" hard pull but I guess not.

    At any rate if anyone needs a form letter for and actual unauthorized or inappropriate hard pull I have one they can use because I just got a new mortagage and made the choice to clean up some of those types of pulls and did so with success. I am happy to share what I learned in the process.

  10. #10
    PhillyDancer1982
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    Default Re: Unauthorized hard inquiry...will this ruin my chances of getting a credit card?

    Yes, a form letter stating my rights would be very helpful. And for the record, it WAS an unauthorized hard inquiry. At the time that I changed my account number, I point-blank asked them if checking my credit would cause a hard inquiry, and they told me "no" it would be a soft one(i.e., creditors do not see it). Even when I told them that it appeared as a hard inquiry, they tried to tell me that I was "wrong" and that it was actually a soft inquiry, even though I had the fucking credit report sitting right in front of me. I think it really WAS supposed to be a soft inquiry and they made a mistake because they're stupid. Geez and it took annoying them by saying, "It's because of your mistake with this inquiry, that now my credit is going to stink as much as ... " before they got fed up enough and finally agreed to write me a letter to send to the credit bureaus...I guess they got so fed up that they decided to satisfy/appease me so I'd shut up.

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    Temporarily Banned Vaughn's Avatar
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    Default Re: Unauthorized hard inquiry...will this ruin my chances of getting a credit card?

    Here is what I have in my files. You may wish to adjust it to suit your specific case or needs. If I can be of any other help to you don't hesitate to ask


    Non-PP Puller Company
    Address
    City State Zip Code

    To Whom It May Concern:

    I have noticed that you have placed an inquiry on my _________ credit file dated ________. As you probably know, Credit Reporting Agencies treat inquiries as a statement of fact and will not allow a consumer to dispute them. Since it is against federal law (Fair Credit Reporting Act -- 15 USC 1681b) for an entity to view a consumer’s credit report without a "permissible purpose," I am writing to inquire as to your alleged purpose, for doing so since I did not apply for employment with your organization nor did I request credit from your organization.

    [Describe any additional details about the inquiry here if need be. For example, your a subscriber to My Credit Keeper and Trilegiant pulled a "hard inquiry" on one of your reports.]

    Based on the evidence in my possession, this inquiry was performed under false pretenses as described in the clear language of the law. 15 USC ?1681n(a)(1)(B ) states, in part, "in the case of liability of a natural person for obtaining a consumer report under false pretenses or knowingly without a permissible purpose, actual damages sustained by the consumer as a result of the failure or $1,000, whichever is greater;"

    You are civilly liable to me in the amount of $1,000.00 for your willful violation of the law -- performing a "hard inquiry" on my __________ file without my permission. I do hope that we can settle this matter amicably. You can remove the inquiry within one (1) business day of the receipt of this notice. Or, we can meet in court where you will end up removing the inquiry, paying me the civil liability fine, punitive damages for my score drop, plus court and attorney fees. The choice is up to you.

    Please contact me immediately at the address listed below.

    Sincerely,

    your name
    Address
    City State Zip Code

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    Featured Member Vamp's Avatar
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    Default Re: Unauthorized hard inquiry...will this ruin my chances of getting a credit card?

    The only time an inquiry is really unauthorized is when the bank does not have permission to pull the report at all. Any time you sign a contract with a bank they have all the legal wording in there for them to be able to pull a credit report on you anytime. By giving you a copy of the agreement they are notifying you. They will also let you know when they pull the report for lending purposes.

    The computer program they use decides if the the inquiry is a hard inquiry or a soft inquiry. From my experience no matter what a teller says if the credit report is pulled at the bank it is a hard inquiry. We were often told the programs we used were just soft inquiries by upper management. It turned out they were hard inquiries. The real problem at branches is misinformation by upper management. No where on the computer program entry screen does it say what type of inquiry it is.

    The letter your recieved from them is what you use to dispute the inquiry with the credit reporting agency. Disputing the inquiry with the bank is useless really. For more information about disputes check out the other thread too.

    Also keep in mind if you do not have many inquiries on your credit report from the past three monthes you really dont have much to worry about. Lenders generally only look at the past three monthes inquiries.

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